The CJEU decision in Larentia + Minerva is another dramatic shift in the recovery of VAT on costs incurred in the acquisition of subsidiaries. The court clarified its earlier judgment in Cibo Participations which, properly understood, means that a management holding company generally carries out economic activity for VAT purposes, as distinct from non-economic activity. This latest decision casts further doubt on BLP Group plc, which tax authorities have long relied upon to deny recovery of VAT incurred on share sales.